Insurance

First Conference on the Financial Management of Large-Scale Catastrophes, Hyderabad, India, 26-27 February 2007

Hyderabad, India, 26-27 February 2007

The First Conference organised under the auspices of the OECD International Network on the Financial Management of Large-Scale Catastrophes was held in Hyderabad on 26-27 February 2007. This international conference was hosted by the Insurance Regulatory and Development Authority (IRDA) of India, with the sponsorship of the Government of Japan and the General Insurance Corporation of India.

The dramatic rise in frequency of large-scale catastrophes and severity of losses involved pose serious economic and financial challenges to governments, policymakers and a wide range of private-sector players, including insurance and reinsurance companies. As a result, the financial management of large-scale catastrophes has become a key policy priority for governments around the world. Responding to calls from OECD member countries and several non-members economies, and taking full advantage of the work already conducted within the OECD on the financial management of large-scale risks, including terrorisms risks, the OECD has established the International Network on the Financial Management of Large-Scale Catastrophes. The main objectives of the Network are to identify emerging financial threats and vulnerabilities; exchange information and expertise on the financial mitigation and compensation of disasters; review the related tools and schemes implemented in OECD and non-OECD countries; and develop policy analysis aimed at improving financial catastrophe mitigation and compensation strategies.

This international conference was held as an integral part of the Network’s activities and aimed to provide an international multistakeholder forum for the exchange of information and experiences on the financial mitigation and compensation of large-scale disasters. The conference was composed of six main sessions and addressed such topics as 1) Indian perspective on the financial management of large-scale catastrophes; 2) evolution of catastrophic risks and financial consequences; 3) role of governments, insurance industry and financial markets in the management of large-scale disasters; 4) improving risk awareness and literacy; and 5) case study on financial management of pandemic risks. The last session was organised in a form of a roundtable aimed at presenting possible policy conclusions and lessons for mutual learning on aspects of financial management of large-scale catastrophes.
The conference brought together senior governmental officials, industry representatives working in the area of financial management of large-scale catastrophes (e.g. insurance sector, financial markets, risk management, catastrophe risk modelling, country risk mitigation schemes, etc.) and academics from OECD member countries, non-OECD economies and India.